Mumbai, Aug 16: South Korean automaker Hyundai Motor announced on Wednesday that it will buy a plant owned by General Motors in the Indian state of Maharashtra.
Hyundai, India’s second-biggest carmaker by sales, is planning to reach an annual cumulative production capacity of 1 million units through its plants in the town of Sriperumbudur, Tamil Nadu, and General Motors’ Talegaon plant in Maharashtra. The agreement covers the acquisition and assignment of land and buildings along with certain machinery and manufacturing equipment at the Talegaon plant, the South Korean company said, without providing details about the deal value.
Manufacturing operations at the plant are scheduled to begin as early as in 2025, according to Hyundai, which is also planning to raise its sales of electric vehicles to 30% of total car sales by 2030.
“As we reinforce our commitment to ‘Atmanirbhar Bharat’ [self-reliant India], we intend to create an advanced manufacturing center for Made-in-India cars in Talegaon, Maharashtra. Our manufacturing operations are scheduled to begin… in 2025,” said Unsoo Kim, managing director and CEO at Hyundai Motor India.
The agreement will allow General Motors to exit India. The US car manufacturer halted sales in the country in 2017 after years of diminishing returns, although its full withdrawal has been marred by complications, including legal tussles with workers and a failure to find a buyer for the Maharashtra plant.
